Gold Price Retreats $100 Off Record Highs at $2,431 Before Weekend
The Gold price has gone through a massive rally in 2024, making new record highs almost every day, but XAU retreated around $100 in the last few trading hours of the week. The decline erased the gains of the last two days, sending the price of Gold to $2,333 despite elevated tensions in the Middle East.
Gold Chart H4 – The 20 SMA Has Been Broken
Gold experienced a significant surge of around $100 over the last two days, reaching an all-time high of $2431. However, this upward momentum reversed on Friday evening before markets closed for the weekend, with gold giving back its gains.
This spike-and-reversal pattern coincided with growing concern in broader markets, particularly with an almost 2% drop in the S&P 500 and Nasdaq indices. The market sentiment appears to be anxious about the potential for a conflict in the Middle East, which likely contributed to the volatility and fluctuations in gold prices.
Goldman Sachs Sees Gold Prices at $2,700 in December 2024
Goldman Sachs recently revised its year-end gold price prediction upward to $2700 from $2300, citing factors such as lack of momentum and retail interest. Despite these challenges, gold’s positive skew remains apparent, with potential catalysts including future Federal Reserve rate cuts that could mitigate headwinds from ETF selling later in the year. Additionally, factors such as the US election cycle and fiscal policy could contribute to upside risks for gold prices, according to Goldman Sachs.
The survey conducted by Goldman Sachs indicates that Asian retail demand, led by China, has been fueled by concerns surrounding economic stability and currency devaluation, particularly in relation to China’s property industry. However, Goldman Sachs also highlights several potential risks to gold, including the possibility of peace, an improved Chinese economy, and a significant shift towards hawkish monetary policy by the Federal Reserve.
Gold Live Chart
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